Numbers vs Economists vs Politicians vs US....???

The rumble of news near and far since the PM`s announcement of the fuel price hike or rather the government`s move to restructure the country subsidy`s package last week was `as like a deer pants for water and so is my soul`.

Let us not get confused but first look at NUMBERS from a general perpective of a consumer.

1 barrel of oil=159 liters x RM2.70/liter=USD 134
1 barrel of crude oil=produce 46% fuel
therefore 2 barrel crude oil =approx.1 barrel fuel
which means we sell 2 barrel of crude oil=we buy back 1 barrel of fuel

ASSUMING we sell crude oil at USD 130 /barrel and buy back fuel at USD 134/barrel( though we have a record high of USD 139/barrel)
@ 2 x USD 130 = 1 x USD134
USD 260-USD 134 =USD 126 (RM 416)

Politicians ask where has the government channeled this USD 126/barrel income to? Fuel sales is Petronas which also translates into government profit?

Before we get ourselves confused further, let me share this bit of information I heard-Malaysia produces oil of type TAPIS which is of very high quality and expensive to use locally but more profitable for export. And that oil price and hike are beyond neither our control nor the OPEC countries.

For further information also, Petronas produces only 42% of our local petroleum demand in the form of petrol, diesel and LPG. The rest is supplied by foreign companies like Shell, Exxon-Mobil, BHP and Chevon all which the government can not force them to give subsidies.

Statistics showed that in 2007, Petronas had contributed back RM48.3 billion(66.2% of its profits) in the form of taxes, dividens and royalties to the country. In field of education amongst others,Petronas had built Universiti Teknologi Petronas, gave scholarships to deserving students,helped to built up interest in science and technology via their Petrosains in KLCC. They also contributed to the building of PUTRAJAYA and the Eastern Economic Corridor. From May 1997 till March 2007, they gave a sum total of RM 58.2 billion as gas subsidy to energy and non-energy sector.

As to the restructuring of the country`s subsidy package, the economists equated rebates for the rich and poor with the cc of the vehicles i.e - RM625 per year for private vehicles with engine capacity of 2000cc and below, including private pickup trucks and jeeps with engine capacity of 2500 cc and below. This rebate was calculated based on 60 liter a month consumption=60 x RM0.78 (price difference before and after hike) x 12 months. If consumption exceeds 60 liter per month,consumers pay the new rate which is RM2.70 as compared RM 3.00 in the open market (30 sen subsidy).

The government also gives diesel subsidy under the fleet card system- RM1.43 per litre (15 sen cheaper as in open market) for over 20 types of vechicles which include school buses, express buses, mini buses, rental cars and taxis; RM1.00 per litre diesel subsidy under the Fisherman e-diesel system which had benefited about 18,000 fishermen and RM1.20 per litre diesel subsidy for ferry operators in rural Sabah and Sarawak.

As to our cooking gas consumption(LPG),subsidy for every 12kg tong gas is as follows:

Semenanjung=RM21.00(retail price)+RM24.61(subsidy )=RM45.61(real price)
Sabah=RM21.96(retail price)+RM25.38(subsidy)=RM47.34(real price)
Sarawak=RM21.96(retail price)+RM25.28(subsidy)=RM47.24(real price)

I believe you all know everybody nowadays knows how to manipulate data, numbers or statistics to their advantage to protect their interest/ricebowls or to fool around. I am not surprised.

My concern is should economic crisis be politicalised. First we had sugar, then cooking oil and then rice shortage crisis and now fuel price hike and who knows what next? And each time all eyes were upon the ruling government. Can more wrongs be right by opening up more cans of worms by the politicians? Can economists not be more learned and farsighted as to how we can deter from head-on to more on-coming economic downturns? Can the business sector be more social responsible as not to focus on reaping profits only from the hard-pressed public which are their potential clients.Lets us ask them-is there a need to raise public transport, school bus, lorry, coach fares..with all the subsidy package in store?

We do not wait for the storm to pass, we have to learn how to dance in the rain instead. Together we can do it if we care to understand what is due in any cyclical economic downturn as an unavoidable spillover from global forces. I am aslo affected by the 40% fuel hike, 26% more for electricity, higher food prices and going to be an inflation of a 10 year record high of 5%. I think street protests can lead us to nowhere!! Be still, listen and comprehend well my dear listeners ?

- Ask not what you can get but what we can do to beat this economic crisis.Together we are a force.There is no U-Turn for fuel hike now but we can come up with loads of brilliant ways to beat it.

Of Numbers,economists,politicians and us-who is the better one? -